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US stocks fall as Fed hints at higher rates

NEW YORK - US stocks dropped after Federal Reserve Chair Janet Yellen offered a rough time-table for when the central bank could raise benchmark interest rates.

The Dow Jones Industrial Average slid 114.02 points (0.70 per cent) to 16,222.17.

The broad-based S&P 500 fell 11.48 (0.61 per cent) to 1,860.77, while the tech-rich Nasdaq Composite Index declined 25.71 (0.59 per cent) to 4,307.60.

Stocks did not move significantly after the Fed’s initial policy announcement at 1800 GMT, which, as expected, continued a plan to trim back stimulus.

But a remark from Yellen during a news conference rattled markets, sending the Dow as low as 16,126.29 before stocks pared losses.

Yellen said the time-frame for raising interest rates could be "on the order of around six months" after the stimulus ends, expected at its current taper pace by year-end.

AFP


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